Never posted in one of these bug trackers so let me know if I can provide 
better info. I have the same problem with the grid of dots.
This is my video: "Intel Corporation 82845G/GL[Brookdale-G]/GE Chipset 
Integrated Graphics Device" and it uses the i810 driver. I don't have 
Beryll/Compiz/DesktopEffects installed.
Changing the video overlay to not use Xv got rid of the dots with every movie 
player. However I found that the new Skype beta with video support required the 
Xv overlay so I was again stuck with dots.
I saw this thread and changed the video depth from 16 to 24 bits & voila it 
worked! Does seem to have slowed things down a bit though.
So I'd say this problem is a i810/Xv/16bit conflict.
Hope that helps,

-- 
[Gutsy Beta] Dots on 16bit Video i810
https://bugs.launchpad.net/bugs/146728
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